Can i find out why I am charged the interest on my new loan. I think it's 5.5 per cent. Tescoloan calculator is considerably lower.
I wouldnt normally question ( had tesco loand before - standard stuff..just pay it as part of agreement etc ) BUT, recently, I had a change of heart when applying for a 'topup ' loan. Obviously, tesco policy is the new agreement pays off the amount still owed and whats left is your with the new terms.
So the reason ive taken to forum - and questioning the interest - is because, this whol 14day cooling off thang is a bit of a joke - in my circumstances. I want to cancel the topped up loan....been told i cant. Its essentially a new loan so i have to pay back the entire amount ( which i cannot do..only the new monies can pay back -ideally wanting to keep as it was before - old agreement ). SO - all boils down too....due to me requesting this extended loan and applying for it....now decided to cancel as Ive thought about it and see that really the interest is a bit of a joke....BUT im left with having to pay it back..the interest first - sticks in my throat to coin a phrase. HENCE, ME wanting to find out exactly how the interest is worked out...
Hi @robbygray, I'm sorry to hear this. When you make an application, if we make you an offer, your rate and payments may be higher depending on our assessment of your circumstances and financial behaviour. You will be told this before completing the application.
You are also told during the application that you can cancel the loan within 14 days of receiving your welcome pack. If you choose to do this you will need to repay the money within 30 days, this includes the total amount borrowed, not just the amount sent to your bank account. This information is regulatory and will have been read out to you when you completed the application.
By signing your credit agreement you have agreed to these terms. I'm sorry if this wasn't the answer you were looking for - Thomas
Appreciate the prompt responce, and yes indeed agreements were all read out/in print. I cannot fault the paperwork.
However, despite this, I do feel the 'cooling off period' is misleading please bare in mind this is an existing loan and i am asking for a topup. Again, i understand fully what you are saying, policy and whatnot, but clearly in a 'topup/extension' loan - be it a completely NEW loan agreement with me - the 'cooling off' period is utter nonsense. Why, who? would ask for a topup and then 'after cooling down' is asked to repay the FULL amount!! It makes no sense. The very person asking for more money - is hardly going to them have ALL the money to pay back.
I have had a tesco loan for many years, no issue ( i say sadly..as obviously would rather not be in a position to have to borrow but blame public sector/Government pay freezes and open door policies to name but two.. ) ..but I think in a situation where someone cools off within 14days - interest to some extent should be waved. You are making a few thousand pounds out of me..for the sake a signed agreement with the words '14day cooling off period' and yet..actually...is plainly isnt. Hence, my question, i would ideally like the interest to be lower...and would LOVE to know just how this is based upon.
On another note - appreciate if you could answer me this. I was on the phone a couple of times the other day with different advice.
1 alternative to my predictiment - is, i pay back the 'new loan agreement monies' which has just reached my account as an overpayment. I assume I can do this?
I know this pay off the interest first of my 'new' loan and some of the 'new' borrowing. My loan will then be adjusted seeing as my total amount is down by approx £6000. I can then choose, to either shorten the length of term OR pay less over the duration of the 'new' loan agreement.
This is correct isnt it? I believe if i paid it back and went with the paying back over shorter term im a little better off with any interest. Would it be beneficial to pay eg, £3000 and ask to shorten length of term and then £3000 and let tesco work out my slightly reduced payments every month?
Again, all this because of a misleading cooling off period whereby I am having to pay back a lot more interest on this new loan agreement. Must say, more I think about it, really doesnt add up. As I said before - in my case - having 2nd thoughts to a extension on my existing loan ( regardless of how tesco does it/creating a new loan agreement ) in case like mine...really...being asked to pay back the full amount with all the new interest is just plain wrong.
To answer these questions, we would need to review your account details to allow us to provide you with the correct information. We are also limited to what we can discuss over social media. Please give our Loans team a call on 0345 600 6016 (Mon - Fri: 8am - 10pm, Sat - Sun: 9am - 5pm), where one of my colleagues will be able to look into this for you - Trinh
I was told on the phone that i would need to speak to the Finance Team who are not in on Sat/Sundays.
On the phone it's always an issue hearing some info / facts / figures and then having time to react / ask the right questions hence the use of a forum.
If i knew roughly that i am correct regarding overpaying once - to bring down the amount..helps to work out best option for me...end of day...if i have to pay back interest would like to reduce as much as possible.
Could you provide me with an email address, as I would like to contact someone who oversees Tesco loans - as I do think in cases where someone is wanting to add to an existing loan - becoming a new loan - i think the 14day cool off should be either taken out of paperwork or at very least have some knowledge that interest would be waved/reduced in those circumstances.
However, thanks again for the reply, I will indeed give them/yourselves a call.
I'm afraid we don't have an email address available for customer use, I'm sorry about that. I have passed on feedback regarding the comments you've made above, I hope you get everything sorted - Ainsley